Many multigenerational companies proudly tout their family heritage in signs and ads, and for good reason. Maintaining family harmony while successfully meeting the demands of business ownership is a significant accomplishment—especially in later generations, when the business has likely grown in size and complexity and the needs of more family members must be met.
But amid the pressure to keep the business thriving and the family happy, is there a chance you might be sacrificing other important principles?
• Are you offering fair wages and benefits to all your workers—including those at the very bottom of your organization chart?
• Are you allocating sufficient funds to ensure a safe working environment for all your employees?
• Are you paying your bills on a timely basis and dealing fairly with your vendors and independent contractors?
• Is your company doing all it can to minimize waste and damage to the environment?
• Is every property owned by your family enterprise being adequately and routinely maintained?
• Are your pricing policies fair to your customers? Is your advertising accurate and ethical? Does your employee training emphasize polite and respectful customer service?
• Are you maintaining a proper separation between business and personal expenses?
Philanthropy and community involvement are important responsibilities of a business family. These charitable contributions also serve to draw favorable publicity and recognition to a business and family. In addition to the good works you may do in public, does your company do the right thing when you think no one is looking? Remember: In this era of blogs, malfeasance tends to come to light quickly.
In this issue of Family Business, we feature several business owners who have addressed issues of succession and stewardship in their own unique way. The fourth-and fifth-generation owners of Wente Vineyards looked beyond their own interests and saw value in promoting the Livermore Valley region. The Olhausen family moved their billiard-table company across the country—and took 65 employees with them. Fourth-generation construction company owner Paul Hoffman spent considerable time and effort on crafting a set of policies that reflect his values. These next-generation leaders are viewing self-interest and business continuity within a broader context. We invite you to take a look.